flight to quality

Definition

Flow of funds from riskier to safer investments in times of marketplace uncertainty or fear. For example, the flow could be from risky investments to safer investments within a given country, or from higher-risk countries to lower-risk countries.

Use flight to quality in a sentence

“
You should try to make sure that you are doing your best to insure flight to quality for your overall portfolio.
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“
When fear was gripping the markets in the financial panic, there was a flight to quality when many investors moved their money out of corporate stocks and bonds and into the safety of U.S. treasury bills.
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